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t Special Report "This could lead to slightly increased investment in highway, bridge, and pavement work above the forecast in some states," Black notes. Additionally, MAP21's expanded federal Transportation Infrastructure Finance & Innovation Act (TIFIA) loan program should also increase construction activity in some states, she adds. A "restructured and reformed program" Dave Bauer, senior vice president of government relations for ARTBA, says MAP-21 institutes numerous major policy reforms that address past concerns about the focus and effectiveness of the highway and transit programs. Resulting is a "restructured and reformed program with a renewed federal role that targets limited resources towards national priorities and maximizes the potential of those investments to deliver transportation improvements." Bauer notes that MAP-21 is a "compromise" between a Democraticcontrolled Senate and a Republicancontrolled House to improve the structure and outcome of federal surface transportation investments. However, the job is not done. This transportation bill is only what ARTBA is calling "a partial victory" because MAP-21 expires on Sept. 30, 2014, and the revenue stream into the HTF "will be inadequate to even maintain existing highway and transit investment levels." The next step, notes ARTBA, is for Congress to approve a long-term HTF revenue solution to complement MAP-21's policy reforms before the law expires. "This long-overdue combination would maximize the ability of federal resources to build and maintain a national surface transportation network that boosts economic competiveness and State surface transportation program revenue sources Local Govt. 2% Motor Fuel Tax 26% Federal Payments 26% Motor Vehicle Fees/Taxes 15% Bonds 14% Misc. 4% Other Imposts 4% Source: FHWA Highway Statistics, Table SF-1, Average for 1999 to 2008 data. General Funds 4% Tolls 5% Source: American Road & Transportation Builders Association job creation," ARTBA explains. The choices in the HTF insolvency crisis that looms for 2014-2015, Black says, are drastic investment cuts — which would threaten hundreds of thousands of jobs — or more general fund infusions and new revenues. These new revenues are still to be determined. There are currently three sources of funding for highway construction: federal highway program and state and local governments. In the past 30 years, all HTF revenue enhancements have been part of a broad tax/budget deal, Black explains. The sources of highway capital spending are 44 percent federal; 32 percent state; and 24 percent local, according to the Federal Highway Administration Highway statistics. Black says that state and local government finance challenges continue, but there are several positive signs, including recovery in overall tax revenues and state and local governments beginning to have dialogues about transportation funding. There have been moves to increase user-fee revenues. In the Nov. 6 election, voters also approved 68 percent of transportation-funding ballot measures. A few states are also trying to cap gasoline sales taxes, Black points out. State surface transportation program revenue sources are mostly funded through federal payments (26 percent) and gas taxes (26 percent). Other sources include motor vehicle fees/taxes (15 percent), bonds (14 percent), tolls (5 percent), local government (2 percent), and general funds as well as other imposts and miscellaneous funding (all at 4 percent). Revenues reaching "pre-recession levels" Although state and local tax revenues are reaching pre-recession levels, Black says, state level commitments have also increased since the recession. In 2005, real state and local total tax revenues were at $1.33 trillion and the 2012 level was estimated at $1.48 trillion for 2012 (when estimates were made in late November). Total state budget shortfalls were -$100 billion in FY 2009, -$191 billion in FY 2010; Aggregates Manager January 2013 • digital exclusive SpecialReport_AGRM0113.indd 28 27B 1/7/13 8:35 AM